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1 Jan 2002

Show Report(HKTDC Electronic Components & Parts, Vol 01,2002)

Electronics Business As Usual

A ceremony full of
the clang and clamour of Chinese lion dancers opened the 21st Hong Kong
Electronics Fair. Thousands of buyers soon filled the Hong Kong Convention
and Exhibition Centre.

The 21st Hong Kong Electronics Fair opened with a flurry as
1,632 exhibitors showcased new and innovative electronic merchandise.

On the first day of the event, held from 15-18 October at the Hong Kong Convention
and Exhibition Centre, visitor registrations surged 12% on the previous year.

Despite lingering economic uncertainty in some major overseas markets, the
four-day fair attracted 42,617 international visitors, demonstrating that
electronics traders were conducting business much as usual.

Among the attendees were 29 buying missions, including national groups from
Argentina, India, Italy and Mexico, as well as city delegations representing
Bangkok, Ho Chi Minh City, Guangzhou, Moscow, Osaka, Shanghai, Shenzhen and
Toronto.

The largest number of overseas visitors came from Asia, followed by Europe
and North America.

"In the US, emotions have settled a bit and consumer sentiment is gradually
returning to normal. Demand for electronic products is picking up. Since our
stock is running low, I came to Hong Kong as planned," said US buyer
Peter Skiera from Tivoli Audio.

The Hong Kong Electronics Fair, organized by the Hong Kong Trade Development
Council, proceeded concurrently with two other events - the Hong Kong Int'l
Lighting Fair for lighting and decorative items (also organized by TDC) and
electronicAsia (co-organized by TDC and Messe Munchen Int'l) for components
and parts.

Together, the three events featured more than 2,500 exhibitors from 22 countries
and regions. Large electronics pavilions represented the Chinese mainland,
Korea and Taiwan.

Visitors examined a diversity of products and services in multimedia and audiovisual,
consumer electronics, personal electronics, home appliances, office automation
and equipment, security and telecoms sectors.

As expected, digital video and still-picture cameras, DVD players, MiniDisc
players, MP3 players and digital televisions were among the fair's hottest
items. Participants pointed to entertainment/home appliances and products
for teenagers as the fastest-growing product categories.

"This is a way we can contribute to society," said general manager
Alex Cheong. The cartridges can be refilled five times, are compatible with
leading printer brands and sell at modest prices.

The fair's Frontiers of Brainpower section featured more than 30 projects
from Hong Kong universities and research institutions. One innovative idea
from the University of Hong Kong uses i.light technology to employ LEDs as
a medium of communication. For example, LEDs in traffic lights could transmit
audio or digital information to pedestrians and drivers via a small receiver.

"The system can advise traffic conditions or give directions to find
the nearest hospital," said its inventor Grantham Pang, an associate
professor in the university's electrical and electronic engineering department.

Buyers were impressed by the fair's scope and product diversity. "The
products were well organized, so I easily found what I needed," said
Sporting Performance Ltd managing director Alan Feltham from the UK.

"Changes in the electronics industry happen in Asia first. We plan to
spend more on digital colour TVs, home theatre systems and DVDs," said
Rank Arena Group Australia Pty Ltd's product manager Dr Shaker Azzam.

A fair survey showed that more than 70% of the US visitors anticipate a rebound
for electronics sales in their home market during late 2002.

The same survey showed that exhibitors and buyers anticipate more sales to
customers on the Chinese mainland due to its accession to the World Trade
Organization.

A total of 716 exhibitors and 1,061 buyers took part in the survey commissioned
by TDC and conducted by AC Nielsen (China) Ltd.

Fifty-four per cent of exhibitors and 57% of buyers predicted markets in 2002
would be the same or better than in 2001.

The 22nd Hong Kong Electronics Fair is scheduled for 11-14 October 2002.

WRITTEN BY ANDREA PAWLYNA

Digital Trend Prevails

The future will be
digital and increasingly full of networks, declared industry experts from
the UK, Germany and Japan when addressing a market seminar at the Hong
Kong Electronics Fair.

A PEEK into the future shows DVD players and large-screen television sets
of 28 inches or more leading the way as demand for digital products swells
in the UK, Germany and Japan.

That was the assessment of three industry experts - trade journalists Peter
Lanzendorf of Germany, Charles Ward of the UK and Masahige Nishiyama of Japan
- who addressed a market seminar on October 17 at the 21st Hong Kong Electronics
Fair.

"There is no doubt the future will be digital," said Lanzendorf,
the chief editor of CE Traden based in Dusseldorf, who noted a clear trend
toward LCD and plasma television models.

Although the 16:9 wide-screen configuration took the UK market by storm, its
reception in Germany has been less enthusiastic. "The old-fashioned 4:3
format still prevails," Lanzendorf said.

He and the managing editor of the UK's ERT Weekly, Charles Ward, said DVD
players remained the strongest consumer electronics sellers in their home
markets.

Economic sluggishness in Japan has not stopped consumer electronics leaders
like Matsushita, Panasonic, Toshiba and Sony from envisioning a day when homes,
cars and offices will be linked by digital networks.

"Now corporations are providing the digital products. Next comes building
networks for them to communicate," said Nishiyama, from Dempa Shimbun.
He expects companies to develop detailed network plans by 2003.

In audio, the trend is downsizing. Consumers insist on smaller units with
multifunction applications. "Clients do not want an appliance for each
function. They prefer combinations like VCR/DVD players, receivers with CD
or DVD players, TVs with DVD players or set-top boxes with hard disks,"
Lanzendorf said.

Once-soaring mobile phone sales have fallen in the UK and Germany. Mistaken
industry assumptions that consumers would continue buying and upgrading to
new models nearly every year led to inflated growth expectations, Ward said.

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